Paris, Amsterdam, February 1 st , 2017
FULL-YEAR RESULTS 2016
An excellent year for the Group.
Recurring Earnings per Share (recurring EPS) of €11.24 exceeds guidance of €11.00-€11.20 announced in February 2016.
|Net Rental Income (in € Mn)||1,529||1,453||+5.2%||+2.4%|
|Convention & Exhibition||103||105||-2.7%||-2.7%|
|Recurring net result (in € Mn)||1,114||1,030||+8.1%|
|Recurring EPS (in €)||11.24||10.46||+7.5%|
Recurring EPS (in €)
vs. rebased FY-2015
|Dec. 31, 2016||Dec. 31, 2015||Growth||Like-for-like growth|
|Total portfolio valuation (in € Mn)||40,495||37,755||+7.3%||+6.2%|
Going Concern Net Asset Value
(in € per share)
EPRA Triple Net Asset Value
(in € per share)
EPRA Net Asset Value
(in € per share)
Figures may not add up due to rounding
"2016 was another year of financial and operational success for Unibail-Rodamco. The successful 2015 deliveries, solid like-for-like rental growth and an all-time low cost of debt drove the strongest year-on-year recurring EPS growth since 2009. The Group disposed of ca. €900 Mn of office buildings, achieving record premiums of almost 25% above the last unaffected appraisal value. In 2016, Unibail-Rodamco also took on a demanding challenge for the future with its new CSR strategy, "Better Places 2030". Unibail-Rodamco aims to reduce by -50% its carbon footprint by 2030  , becoming the first listed real estate company to engage on such an ambitious strategy. With its high quality assets, its flexible development pipeline, secured low cost of debt and dedicated, talented professionals, Unibail-Rodamco is well positioned to deliver continued strong growth." Christophe Cuvillier, CEO and Chairman of the Management Board
RECURRING EPS AT €11.24, UP +10.4% COMPARED TO REBASED FY-2015
Recurring EPS came to €11.24 in 2016, representing an increase of +10.4% from the recurring EPS for 2015, adjusted for the disposals of 2015, despite €990 Mn  of additional disposals in 2016, mainly offices. The Group exceeded its recurring EPS guidance of €11.00-€11.20 announced in February 2016. Growth from reported FY-2015 recurring EPS was +7.5%.
SOLID OPERATING PERFORMANCE
Through December 31, 2016, tenant sales increased by +1.4% compared to 2015. The Group tenant sales' growth was held back by the unfavourable weather impact on fashion sales in Europe, and by France, where the Group has a very strong presence in the Paris region, in which footfall and sales were impacted by the terrorist threat.
The Shopping Centre like-for-like NRI grew by +3.4%, +310 bps above indexation of only +0.3%. The Group signed 1,479 leases on consolidated standing assets with a Minimum Guaranteed Rent uplift of +17.4%. The tenant rotation rate reached 13.3%, well above the Group's 10% annual target. The EPRA vacancy rate was 2.3%, including 0.2% of strategic vacancy, as at December 31, 2016, down from 2.5% as at December 31, 2015.
With 2.4 million m 2 of office space let in 2016, take-up in the Paris region was up by +6% over 2015. The Group leased more than 83,000 weighted square meters (wm 2 ), including more than 67,000 wm 2 in France. Office buildings sold, including 2-8 Ancelle, So Ouest Office, 70-80 Wilson and Nouvel Air generated an average premium of +24.8% to the last unaffected appraisal value. As a result of these disposals, NRI for the year decreased by -10%.
Convention & Exhibition
Convention & Exhibition's recurring net operating income increased by +4.9% from FY-2015 and was up +9.7% compared to FY-2014, the latest comparable period.
The first phase of renovation works (2015-2017) on the Porte de Versailles site continued with the construction of the new Welcome Plaza, travelators in the Central Alley, the Meshing facade of Pavilion 1 by Dominique Perrault, and the redevelopment of the 72,000 m² Pavilion 7, to create the new Paris Convention Centre, including a 5,200-seat auditorium.
VALUE CREATION OF €28.75 PER SHARE
€8.0 Bn DEVELOPMENT PIPELINE TO DRIVE FUTURE GROWTH
After the many openings of 2015, 2016 saw the delivery of two retail extensions (Forum des Halles and Bonaire) and an office refurbishment project. Five new extension and renovation projects for a total investment cost (TIC) of almost €500 Mn were added to the retail development pipeline. The estimated TIC of the consolidated development pipeline as at December 31, 2016 amounts to €8.0 Bn (vs. €7.4 Bn as at December 31, 2015). The Group expects to add 1.2 million m² of GLA in retail from the current pipeline, representing an increase of ca. 33% of its retail GLA.
2017 will see the delivery of one new development (Wroclavia in Poland) and four extensions and renovations of existing assets.
ALL-TIME LOW AVERAGE COST OF DEBT AND RECORD MATURITY
In 2016, Unibail-Rodamco raised €3.7 Bn of medium- to long-term funds in the bond and bank markets. Its financial ratios stand at healthy levels: Loan-to-Value at 33% (35% as at December 31, 2015) and the interest coverage ratio at 5.9x (4.6x in 2015). The average cost of debt in 2016 reached an all-time low of 1.6% (down -60 bps from 2.2% in 2015) and the average maturity was extended to a record 7 years (6.5 years as at December 31, 2015). The Group issued the first public bond with a 20-year maturity for a real-estate company, the longest maturity ever achieved in the sector on the Euro market, and an 8-year 3-month Euro bond with the lowest coupon ever achieved by the Group (0.875%).
For 2017, the Group expects recurring EPS of between €11.80 and €12.00 .
For the medium term, the Group confirms it expects its recurring EPS to grow at a compound annual growth rate of between +6% and +8% . This medium term outlook results from the Group's annual business plan exercise; annual growth rates differ from year to year. 
For the 2016 fiscal year, the Group will propose a cash dividend of €10.20 per share for approval by the Annual General Meeting (AGM) on April 25, 2017. The planned payment schedule is:
For 2017 and thereafter, the Group expects to increase its annual cash distribution broadly in line with its recurring EPS growth.
For further information, please contact:
+33 1 76 77 58 02
+33 1 76 77 57 94
Created in 1968, Unibail-Rodamco SE is Europe's largest listed commercial property company, with a presence in 11 EU countries, and a portfolio of assets valued at €40.5 billion as of December 31, 2016. As an integrated operator, investor and developer, the Group aims to cover the whole of the real estate value creation chain. With the support of its 1,990 professionals, Unibail-Rodamco applies those skills to highly specialised market segments such as large shopping centres in major European cities and large offices and convention & exhibition centres in the Paris region.
The Group distinguishes itself through its focus on the highest architectural, city planning and environmental standards. Its long term approach and sustainable vision focuses on the development or redevelopment of outstanding places to shop, work and relax. Its commitment to environmental, economic and social sustainability has been recognised by inclusion in the FTSE4Good and STOXX Global ESG Leaders indexes.
The Group is a member of the CAC 40, AEX 25 and EuroSTOXX 50 indices. It benefits from an A rating from Standard & Poor's and Fitch Ratings.
For more information, please visit our website: www.unibail-rodamco.com